MAXIS BERHAD

3Q 2013 RESULTS

12 NOVEMBER 2013

YTD SEPT13 KEY HIGHLIGHTS

Stable revenue base; non-voice key contributor
+3.0% total revenue
+1.9% service revenue*
+4.5% EBITDA excluding CTS# costs
+14.6% non-SMS internet & data revenue
Non-voice revenue at 46.9% of mobile revenue

Continuous investment in future data revenue

Widest 4G LTE coverage footprint & device offerings
Further expansion & enhancements of 3G infrastructure

Dividend declared
Third interim dividend of 8 sen/share

* Service revenue defined as total revenue less device revenue

# CTS defined as Career Transition Scheme offered by Maxis as part of its recent reorganisation (one-time impact in 3Q13 & YTD13)

3Q13 & YTD13 KEY NUMBERS

RM mn

Growth
Growth
YTD12 YTD13
QoQ
YTD

2Q13

3Q13

Total Revenue

2,294

2,239

-2.4%

6,661

6,860

+3.0%

Service Revenue

2,199

2,196

-0.1%

6,473

6,597

+1.9%

EBITDA#

1,165

1,154

-0.9%

3,294

3,441

+4.5%

EBITDA Margin#

50.8%

51.5%

+0.7pp

49.5%

50.2%

+0.7pp

560

550

-1.8%

1,570

1,631

+3.9%

24.4%

24.6%

+0.2pp

23.6%

23.8%

+0.2pp

PAT*
PAT Margin*

# EBITDA normalised for one-time Career Transition Scheme (CTS) costs totaling RM102m in 3Q13 and YTD13
* PAT normalised for net CTS costs of RM76m in 3Q13 and YTD13, accelerated depreciation of RM30m, RM75m and RM27m in 2Q13, YTD13
and YTD12 respectively, PPE write-off of RM97m in YTD12 and last mile broadband tax incentive of RM32m in YTD12

REVENUE

Grew YTD revenue across all business segments

+3.0%

Total Revenue (RM mn)

6,661

Device Revenue
Service Revenue

188

6,860
263

+1.1%

Strong mobile internet growth

offset voice and messaging
decline

-2.4%
2,216

2,327

2,306

2,294

2,239
6,473

62

80

125

95

43

2,154

2,226

2,202

2,199

2,196

3Q12

4Q12

1Q13

2Q13

3Q13

6,597

YTD 2012 YTD 2013

3Q12 4Q12 1Q13 2Q13 3Q13

Growth
QoQ

Growth
YTD

Mobile

2,120 2,183 2,184 2,151 2,086

-3.0%

+1.1%

53

55

63

58

58

0.0%

+20.9%

11

14

16

18

+12.5%

>100%

34

57

66

69

77

+11.6%

+52.5%

Total Revenue

2,216 2,306 2,327 2,294 2,239

-2.4%

+3.0%

Service
Revenue*

2,154 2,226 2,202 2,199 2,196

-0.1%

+1.9%

Home
International
Gateway

+14.6% non-SMS mobile internet

and data revenue

Non-voice continued to be
primary revenue contributor

RM mn

Enterprise
Fixed

Service revenue +1.9% YTD

YTD contribution at 46.9% of

mobile revenue (YTD12: 45.4%)

* Service revenue defined as total revenue less device revenue

MOBILE SUBSCRIPTIONS

Impacted by high churn on legacy plans

Market Definition Mobile Subscriptions (000)

13,930

14,091

14,136

13,873

3,318

3,321

3,356

3,376

10,612

3Q12

10,770

4Q12

10,780

1Q13

10,497

2Q13

13,213

3,368

9,845

High prepaid churn from Hotlink

Youth Club SIM expiry & legacy
plans
Mainly non-active non-revenue
generating SIMs

Postpaid base excluding WBB

grew by 19k QoQ

3Q13

Maxis (Postpaid and WBB)

Hotlink (Prepaid)

Not reporting revenue generating subscriptions effective 3Q13

ARPU & MOU

Data substitution gaining momentum

ARPU* (RM/month)
Postpaid

Prepaid

WBB

102

103

107

106

66

65

48

46

33

3Q12

32

4Q12

1Q13

107

100

66

65

48

34

Blended

48

46
33

31

2Q13

69

64

3Q13

Blended ARPU stable

102

65

48
33

YTD12

47
32

YTD13

* Postpaid, prepaid & blended ARPUs restated retrospectively

to reflect market definition subscriptions as base

Minutes of Usage*
Postpaid
325

160
121

Prepaid

322

165
127

307

160
125

Blended
307

156
119

333
304

298

153
116

159
117

MOUs reflecting continuous

data substitution; higher
impact on postpaid MOU

157
120
* Minutes of Usage (MOU): Maxis on-net MOU is calculated
based on outgoing calls only

3Q12

4Q12

1Q13

2Q13

3Q13

YTD12

YTD13

* MOUs restated retrospectively to reflect market definition 6

subscriptions as base

NON-VOICE REVENUE

Mobile internet key growth driver

Non-Voice Revenue* (RM mn)
-1.5%
-7.5%
45.3%

960

3Q12

46.2%

47.8%

47.6%

1,009

1,044

1,023

4Q12

+4.5%
45.4%

46.9%

2,883

3,013

45.3%

946

1Q13

2Q13

3Q13

YTD12

Non Voice Revenue as a % of Mobile Revenue

Non Voice Revenue

YTD13

Non-voice service revenue net of

devices grew +2.0% YTD
+14.6% internet & data revenue (nonSMS) net of devices YTD; now at 62%
of non-voice revenue (YTD12: 56%)
YTD non-voice contribution at 46.9%
of mobile revenue:
2Q13
Mobile Internet/VAS 23.0%
Messaging
13.9%
WBB
6.3%
Devices
4.4%

3Q13
24.3%
13.2%
5.8%
2.0%

* Non-voice revenue refers to non-voice mobile revenue

WIRELESS BROADBAND

Access shifting to smart-phones & tablets

WBB Subscription & ARPU
-3.0%
-3.0%
66

65

65

66

679

673

663

Internet adoption increasingly

driven by smart-phones & tablets

64

710

3Q12

4Q12

1Q13

WBB ARPU (RM)

2Q13

3Q13

+0.5%
+1.7%
-5.6%

119

635

WBB Subs (000s)

WBB Revenue (RM mn)

117

Blended smart-phone penetration

at 53%

125

126

368

370

WBB subscriptions are defined as subscriptions on postpaid data plans

using USB modem and tablets

119

WBB subscriptions restated retrospectively to reflect market definition as

base

3Q12

4Q12

1Q13

2Q13

3Q13

YTD12

YTD13

WBB revenue restated retrospectively to reflect service revenue & re-class

of prepaid broadband to prepaid mobile revenue

HOME SEGMENT

Steady growth
Home Subscriptions (000)
43.1
36.1
30.7
25.7
19.4

3Q12

4Q12

1Q13

2Q13

3Q13

Steady growth in subscriptions to 43.1k

home connected as at end 3Q13

INVESTING IN FUTURE DATA REVENUE

Maintained 4G LTE leadership

Capex (RM mn)

548
404

399

191

216

145

3Q12

141

4Q12

1Q13

2Q13

3Q13

YTD12

YTD13

Widest 4G LTE coverage footprint and device

offerings
335k LTE enabled devices

Continuous expansion & enhancements of 3G

infrastructure
3G HSPA+ sites increased to almost 5,500 sites; of
which more than 4,100 are capable of up to 42Mbps

Capex spend in 2H 2013 as planned; supporting

network and major IT initiatives
10

EBITDA

Margin uplift continues from cost discipline

EBITDA (RM mn)

+9.4%
-0.9%

47.6%

1,055

3Q12

46.2%

1,065

4Q12

48.2%

50.8%

+4.5%
50.2%

49.5%

3,441

51.5%

YTD EBITDA +4.5% excluding

CTS costs

3,294
1,122

1,165

EBITDA margin +0.7pp to 50.2%

1,154

Sequential QoQ EBITDA margin

above 50% excluding CTS costs
1Q13

2Q13

3Q13

YTD12

Contributed by stable opex &

lower outright device sales

YTD13

COST COMPOSITION (excluding CTS)

% of Revenue

3Q12

4Q12

1Q13

2Q13

3Q13

YTD12

YTD13

Direct Expenses

33.5%

35.3%

34.4%

34.3%

33.0%

32.9%

33.9%

Sales & Mktg

4.3%

4.6%

3.9%

3.2%

3.6%

4.2%

3.6%

Staff-Related Costs

5.7%

5.6%

5.8%

4.8%

5.2%

5.5%

5.2%

Bad Debts

1.0%

0.4%

0.9%

0.7%

0.4%

1.1%

0.6%

G&A and Others

7.9%

7.9%

6.8%

6.2%

6.3%

6.8%

6.5%

Total Expenses

52.4%

53.8%

51.8%

49.2%

48.5%

50.5%

49.8%

EBITDA Margin

47.6%

46.2%

48.2%

50.8%

51.5%

49.5%

50.2%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

11

PAT

Comparable QoQ; higher YTD

Normalised PAT (RM mn)
+17.5%

+3.9%

-1.8%
23.6%
1,570
21.1%

20.6%

468

475

3Q12

4Q12

24.4%

24.6%

521

560

550

1Q13

2Q13

3Q13

22.4%

23.8%

YTD PAT +3.9% or RM1,631m;

after accounting for higher
financing & amortisation costs
and these one-offs:

1,631

CTS costs RM76 million

Accelerated depreciation RM75
million

YTD12

YTD13

12

CASH FLOWS
RM mn

1Q13 2Q13 3Q13 YTD12 YTD13

Cash flow from operating activities
Cash flow used in investing activities
Purchase of property,
plant & equipment
Purchase of intangible assets
Cash flow before financing activities

RM mn
Gearing Level

2Q13

3Q13

7,464

7,390

534

1,177

908 2,561

2,824

Debt #

(192) (179) (161) (604)

(532)

Cash

(115) (121)

(90) (401)

(326)

Net debt

6,930

6,213

(58)

(71) (203)

(206)

Total equity

6,286

6,254

535 1,010

747 1,957

2,292

727 1,189

(77)

Ratios
Cash flow used in financing activities
Dividends paid
Debt drawdown
Debt repayment
Payment of finance costs
Others
Net change in cash
Opening Cash Balance
Closing Cash Balance

(715) (1,263) (104) (1,646) (2,082)

(600) (1,200)
- (2,400) (1,800)
- 2,450
(4)
- (1,450)
(4)
(115)
(60) (115) (243) (290)
1
11
(3)
12
(180) (253)
643
311
210
967
787

787
534
838
534 1,177 1,149

967
1,177

Net debt to EBITDA * 1.49x

Net debt to Equity
1.10x

1.48x
0.99x

# Incl. derivative financial instruments for

hedging
* YTD13 annualised

Third interim dividend of

RM600m (8 sen per share)

13

YTD13 SUMMARY
Stable revenue base; non-voice key contributor
+3.0% total revenue
+1.9% service revenue*
+4.5% EBITDA excluding CTS# costs
+14.6% non-SMS internet & data revenue
Non-voice revenue at 46.9% of mobile revenue

Continuous investment in future data revenue

Widest 4G LTE coverage footprint & device offerings
Further expansion & enhancements of 3G infrastructure

8 sen third interim dividend

YTD dividend pay-out maintained at RM1.8bn including
third interim dividend

* Service revenue defined as total revenue less device revenue

# CTS defined as Career Transition Scheme offered by Maxis as part of its recent reorganisation (onetime impact in 3Q13 & YTD13)

14

THANK YOU

15

Maxis Berhad

DISCLAIMER

This presentation by Maxis Berhad (Maxis) contains forward-looking statements. Forward-looking statements can be
identified by the use of forward-looking terminology such as the words may, will, would, could, believe,
expect, anticipate, intend, estimate, aim, plan, forecast or similar expressions and include all statements
that are not historical facts.
Forward-looking statements made in this presentation involve known and unknown risks, uncertainties and other factors
which may cause actual future performance, outcomes and results to differ materially from those expressed or implied in
such forward-looking statements. Such forward-looking statements are based on numerous assumptions and reflect
Maxis current views with respect to future events and are not a guarantee of future performance. Maxis cannot give any
assurance that such forward-looking statements will be realized.
Factors which could affect actual future performance, outcomes and results include (without limitation) general industry
and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties,
competition from other companies and avenues for the sale/distribution of goods and services, shifts in customer
demands, customers and partners, changes in operating expenses, including employee wages, benefits and training,
governmental and public policy changes and the continued availability of financing in the amounts and the terms
necessary to support future business.
Forward-looking statements made in this presentation are made only as at the date of this presentation and Maxis and its
subsidiaries, affiliates, representatives and advisers expressly disclaim any obligation or undertaking to release, publicly or
otherwise, any updates or revisions to any such forward-looking statements to reflect any change in Maxis expectations,
new information, future events, change in conditions or circumstances or otherwise.
This presentation has been prepared by Maxis. The information in this presentation, including forward-looking
statements, has not been independently verified. Without limiting any of the foregoing in this disclaimer, no
representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy
or completeness of such information. Maxis and its subsidiaries, affiliates, representatives and advisers shall have no
liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs or expenses howsoever arising out of
or in connection with this presentation.

APPENDICES

Consolidated Income Statement

RM mn

2Q13

3Q13

QoQ chg

YTD12

YTD13

YoY chg

REVENUE

2,294

2,239

-2.4%

6,661

6,860

+3.0%

Direct Expenses

(787)

(738)

(2,196)

(2,326)

Indirect Expenses

(342)

(449)

(1,171)

(1,195)

(1,129)

(1,187)

(3,367)

(3,521)

EBITDA

1,165

1,052

3,294

3,339

Margin

50.8%

47.0%

49.5%

48.7%

Depreciation

(277)

(239)

(792)

(829)

Amortisation

(63)

(64)

(133)

(184)

(9)

(129)

(16)

816

749

2,240

2,310

(88)

(89)

(251)

(265)

40

23

735

667

2,029

2,068

(205)

(193)

(547)

(588)

530

474

1,482

1,480

23.1%

21.2%

22.2%

21.6%

Total Opex

Others
EBIT
Interest Expense
Interest Income
PBT
Tax
PAT
Margin

-9.7%

-10.6%

+1.4%

-0.1%

18

Presentation changes from 3Q13

Subscriptions
Change to market definition subscriptions to be in line with market practice
ARPUs
Restated to reflect change in subscription base to market definition
WBB Revenue
Restated to exclude device revenue
Reclassification of prepaid broadband revenue to prepaid mobile

19

Historical data arising from presentation

changes (restated to FY2011)
1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

TOTAL
SUBS
(000)

14,115

14,113

14,224

13,995

13,830

13,827

13,930

14,091

14,136

13,873

13,213

POST
SUBS
(000)

3,316

3,324

3,382

3,393

3,385

3,312

3,318

3,321

3,356

3,376

3,368

PRE SUBS
(000)

10,799

10,789

10,843

10,602

10,445

10,515

10,612

10,770

10,780

10,497

9,845

WBB SUBS
(000)

636

665

711

717

708

687

710

679

673

663

636

WBB REV
(RM mn)

113

118

128

133

128

143

117

119

125

126

119

WBB subscriptions is included in postpaid subscriptions

20

Historical data arising from presentation

changes (restated to FY2011)
1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

104

107

108

108

105

109

106

107

102

103

100

PRE ARPU
(RM)

31

31

33

33

33

33

34

33

32

31

33

BLENDED
ARPU
(RM)

45

46

47

47

47

47

47

47

45

45

47

WBB ARPU
(RM)

61

63

63

65

64

67

66

65

65

66

64

POST MOU
(mins)

343

348

345

345

334

340

325

322

307

307

298

PRE MOU
(mins)

124

125

124

119

116

115

121

127

126

119

115

BLENDED
MOU
(mins)

167

168

166

162

158

158

160

165

161

156

153

POST
ARPU
(RM)

21